Subscribe

Second tier smartphones the next big thing

Bonnie Tubbs
By Bonnie Tubbs, ITWeb telecoms editor.
Johannesburg, 01 Jun 2015
The LG G4 signals the rise of second-tier manufacturers in the two-horse smartphone race.
The LG G4 signals the rise of second-tier manufacturers in the two-horse smartphone race.

Apple and Samsung may have been enjoying a two-horse race when it comes to the high-end smartphone landscape in SA, but all of that is about to change.

This is according to market watchers, who say "second tier" brands like LG, HTC, Huawei, Sony and Alcatel are on the rise - armed with bigger marketing budgets and increasingly better products.

Last week, electronics giant LG unveiled its latest flagship phone - the G4 - to the local market. The 5.5-inch Android phone, which is set to become available in SA this month, takes on rivals with a superior camera and battery capacity, and has added a physical differentiating factor with its real leather casing options.

While it is early days yet, the phone has garnered some good reviews and is positioned to be the company's best-selling phone yet, two models on from the G2 in 2013, with which LG started ramping up its marketing efforts in SA.

Swift Consulting CEO and tech blogger Liron Segev says the mid-tier brands, including LG, are "coming in fast and furious" and are going to be nudging in on the two-horse race between Samsung and Apple in the not-too-distant future.

"In the smartphone space it's about three things: marketing, marketing and marketing, and these guys are spending on marketing. Already, it is no longer the default for a consumer to walk into a shop and say, 'I want an iPhone' or 'I want a Samsung'."

What people want, says Segev, is quality, service and price - and the runner-up brands are delivering just that. "They have the time, the will and the product to start rising in the smartphone war. There is no 'next big thing' in smartphones as I see it - the next big thing is the takeover by second tier brands."

IDC's SA analyst Joseph Hlongwane says, however, it will not be an easy gain. "Playing in the high end means you are competing head-on with the likes of Samsung and Apple and trying to steal their loyal consumers - which is extremely difficult."

He notes LG's share of the global smartphone market last year was 1.1%, while Samsung and Apple's were 41.7% and 5.3% respectively.

Smart ecosystem

Analysts note it is becoming increasingly difficult for smartphone makers to differentiate themselves - whether by software, where a copycat culture is inevitable, or with hardware.

Flagship phone battery specs:

LG G4: 3000 mAh (removable)
Samsung S6: 2550 mAh
iPhone 6: 1810 mAh
iPhone 6 Plus: 2915 mAh
Huawei P8: 2680 mAh
Sony Xperia Z3: 3100 mAh
BlackBerry Z30: 2880 mAh (non-removable)
Microsoft Lumia 940: 3000 mAh

World Wide Worx MD Arthur Goldstuck says both hardware and software is commoditised. "From a hardware point of view you see it most dramatically in the extent to which the compact versions of the Sony and Samsung flagships are so similar to the iPhone.

"Software is in itself also no longer a differentiator, as the average consumer generally can't tell the difference between one release of Android and another, or one skin and another. That tends to be more of a techie and media obsession.

"In reality, the focus is moving to the ecosystem, with photo storage, dedicated apps, content offerings and the like coming into play. Being part of a particular usage, behaviour or interest world will become as important as what device you use."

Hardware focus is on the rise, however, with the curved phones and self-healing screens recently making their debut - as well as new materials.

Hlongwane says manufacturers will continue trying to outdo each other with new designs, high-performing processes, high-quality cameras and long battery life to try and lure end-users. "However, the only brands that have a good chance of succeeding in a market such as SA are brands that will be able to strike the delicate balance between excellent hardware and price point."

Segev says battery life is a critical factor. "An amazing phone with dead battery is useless. We are willing to excuse many things if there is decent battery life."

Share